As more and more demand and competition starts to increase, you may wonder if there are new ways to make the supply chain more efficient. Some people have looked to optimize this by improving this and shaving off some of the costs.
Some retailers however may want to cut out the supply chain period and opt for what’s called direct store delivery. the problem with this, however, is that it’s not easy to put together nor is it considered the best option, but when you put this in correctly, it can offer some massive savings to your costs, and a host of other benefits that will help businesses get a huge advantage down the line.
What is it and the Benefits?
You might wonder what this is. Basically, this is when you have the manufacturer of something delivers directly ships it to a specific location, rather than using a distribution center to help do the job.
The benefits of this is that it’s good for those who want something a bit more simplified, and it helps to offer the suppler the good that you need, and it helps reduce how much you’re going to spend, properly streamlines it, and overall is a better option.
When to get this
If you’re a supplier that does use fresh foods and perishables, the higher your expiration date risk and the shorter the shelf life of the inventory is, this can definitely be something that’s a challenge, and it ca be an opportunity for you to create something that’s been made so that you don’t have to worry about it being damaged
This also is great for fragile items as they’re moved far less, and the perishables get to the shelves in a quicker fashion, which is something that a lot of grocery stores do use.
It also is good for those who don’t want to spend the extra money to store the item in the warehouse, and it also reduces the different expenses that come with this too, and it can be something that’ll help with maintaining, renting, or even with staffing expenses, cutting down all of these.
It also is good if you need something that has a lot of inventory turnover, and it can be something that you can have traveling directly from the suppliers directly to there. This helps it be availible, and it also has the highest turnover of the inventory, which is good for a lot of stores as well who have limited space.
It also is good if you’re a business that thrives on proper customer experience. If you don’t want things to be out of stock and get people upset, it’s something to consider, as this can help get the items to them a lot quicker.
The challenges
That isn’t to say it’s all that easy. In fact, it can be a challenge. While direct store delivery does get rid of the labor and warehousing, because of the urgency, it can make the transit costs rise. It also is definitely someone who works with SKUs, and if you have to correct problems that are happening.
It is something as well which can be a problem if you do DTC fulfillment. While you may have a micro-fulfillment facility, you’ve got to watch the inventory levels, since this can be quite expensive.
Finally, it can sometimes be hard if you don’t have the personnel to maintain he stock. It can however be a good option if you need it to be shipped out fast, and if you’re working with fragile items, it’s a must to use.